Author: roymorgansocial

Wilson tips difficult six months for stocks

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Original article by Vanessa Desloires
The Australian Financial Review – Page: 28 : 31-May-16

The WAM Leaders fund debuted on the Australian sharemarket on 30 May 2016, after raising $A394.3m via an IPO. The listed investment company will invest in S&P/ASX 200 stocks, with a focus on growth-oriented large-capitalisation stocks that are undervalued. Veteran fund manager Geoff Wilson says the fund will not invest in the top-20 stocks at present, as they have performed poorly for investors over the last 12 months. He expects market conditions to be challenging for the next six months.

CORPORATES
WAM LEADERS LIMITED – ASX WLE, STANDARD AND POOR’S ASX 200 INDEX, BHP BILLITON LIMITED – ASX BHP, TELSTRA CORPORATION LIMITED – ASX TLS, WOOLWORTHS LIMITED – ASX WOW, WESFARMERS LIMITED – ASX WES, RIO TINTO LIMITED – ASX RIO, WAM CAPITAL LIMITED – ASX WAM, ARISTOCRAT LEISURE LIMITED – ASX ALL, TPG TELECOM LIMITED – ASX TPM, VOCUS COMMUNICATIONS LIMITED – ASX VOC, MAGELLAN GLOBAL EQUITIES FUND (MANAGED FUND) – ASX MGE

Aussie miner accused of menacing US giant Alcoa on demerger plan

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Original article by John Kehoe
The Australian Financial Review – Page: 8 : 30-May-16

US aluminium giant Alcoa has launched legal action against Australian-listed Alumina, its partner in the Alcoa World Alumina & Chemicals joint venture. The dispute centres on Alcoa’s proposal to demerge its upstream and downstream assets. The former will hold Alcoa’s 60 per cent stake in AWAC if the deal proceeds. Alcoa’s lawsuit alleges that the joint venture agreement does give Alumina the right to block the demerger.

CORPORATES
ALUMINA LIMITED – ASX AWC, ALCOA INCORPORATED, ALCOA WORLDWIDE ALUMINA AND CHEMICALS

National accounts, US data to steer market sentiment

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Original article by Mark Mulligan
The Australian Financial Review – Page: 22 : 30-May-16

Futures traders expect the Australian sharemarket to gain 23 points when trading resumes on 30 May 2016, after the benchmark S&P/ASX 200 closed above 5,400 in the previous trading session. Local economic figures to be released in the coming week includes current account and GDP data for the March quarter, while investors will also be awaiting the release of key US economic indicators, including the latest wages and consumer confidence data.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, WESTPAC BANKING CORPORATION – ASX WBC, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, BLOOMBERG LP, UNITED STATES. FEDERAL RESERVE BOARD, UNITED STATES. FEDERAL OPEN MARKET COMMITTEE, SECURITIES INDUSTRY AND FINANCIAL MARKETS ASSOCIATION

SPA calls for Netflix local content quota

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Original article by Max Mason
The Australian Financial Review – Page: 31 : 30-May-16

Screen Producers Australia CEO Matthew Deaner argues that subscription video-on-demand services should be subject to the same local content requirements as traditional TV broadcasters. The European Union has proposed a requirement for at least 20 per cent of content broadcast by streaming services in Europe to have been produced locally. Nine Entertainment Company CEO Hugh Marks says it is more important for international SVOD services to pay their full tax liabilities in Australia.

CORPORATES
SCREEN PRODUCERS AUSTRALIA, NINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NEC, NETFLIX INCORPORATED, AMAZON.COM INCORPORATED, AUSTRALIAN BROADCASTING CORPORATION, AUSTRALIA. DEPT OF COMMUNICATIONS AND THE ARTS

Labor veteran brands Shorten ‘anti-business’

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Original article by Annabel Hepworth
The Australian – Page: 1 & 6 : 30-May-16

Business leaders have criticised the Australian Labor Party’s handling of the issue of corporate tax during the 2016 federal election campaign. Minerals Council of Australia CEO Brendan Pearson has described Labor’s approach to the issue as "disappointing", while Queensland’s former Labor treasurer Keith DeLacy has accused federal Labor’s tax policy of being "anti-business". Meanwhile, former ANZ Bank chairman John Morschel has expressed concern that Labor’s election policies would result in a big increase in government spending.

CORPORATES
AUSTRALIAN LABOR PARTY, MINERALS COUNCIL OF AUSTRALIA, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, MACARTHUR COAL LIMITED, CUBBIE STATION, NSW BUSINESS CHAMBER LIMITED, BUSINESS COUNCIL OF AUSTRALIA, AUSTRALIAN CHAMBER OF COMMERCE AND INDUSTRY, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET

Industrials good value, says UBS

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Original article by Stephen Cauchi
The Australian Financial Review – Page: 22 : 30-May-16

UBS strategist David Cassidy notes that Australian industrial stocks are currently trading at more than 18 times forward earnings. In contrast, the long-term average is about 16 times. However, Cassidy has identified a number of industrial stocks that he says still represent value for investors. His top picks include Aristocrat Leisure, Orora, Resmed, Treasury Wine Estates, Crown Resorts and Vocus Communications.

CORPORATES
UBS HOLDINGS PTY LTD, ARISTOCRAT LEISURE LIMITED – ASX ALL, ORORA LIMITED – ASX ORA, RESMED INCORPORATED – ASX RMD, TREASURY WINE ESTATES LIMITED – ASX TWE, CROWN RESORTS LIMITED – ASX CWN, VOCUS COMMUNICATIONS LIMITED – ASX VOC, BRAMBLES LIMITED – ASX BXB, SIRTEX MEDICAL LIMITED – ASX SRX, ANSELL LIMITED – ASX ANN, COMPUTERSHARE LIMITED – ASX CPU, HARVEY NORMAN HOLDINGS LIMITED – ASX HVN, INCITEC PIVOT LIMITED – ASX IPL, QANTAS AIRWAYS LIMITED – ASX QAN

Alarm over debt to GDP ratio

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Original article by Jacob Greber
The Australian Financial Review – Page: 4 : 30-May-16

Analysis by Morgan Stanley suggests that each additional $A1 of GDP in 2015 cost more than $A9 of debt to generate. Morgan Stanley economist Daniel Blake says Australia must find ways to generate economic growth that are less dependent on debt. He warns that the decline in the productivity of Australia’s debt is likely to increase the severity of any economic downturn that may occur. He also argues that tax incentives should encourage investment in innovation and business start-ups rather than residential property.

CORPORATES
MORGAN STANLEY AUSTRALIA LIMITED, MOODY’S INVESTORS SERVICE INCORPORATED, AUSTRALIAN LABOR PARTY

Leaders vie to score goals in women’s sport

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Original article by Sarah Martin, Rosie Lewis
The Australian – Page: 8 : 30-May-16

Federal Opposition Leader Bill Shorten notes that women’s sports events account for just seven per cent of Australian TV networks’ overall sports coverage. Shorten aims to address this imbalance by committing an extra $A21m in funding for the ABC to provide greater coverage of women’s sports. Meanwhile, Prime Minister Malcolm Turnbull has indicated that the Government will provide an additional $A60m in funding for the Sporting Schools program.

CORPORATES
AUSTRALIAN LABOR PARTY, AUSTRALIAN BROADCASTING CORPORATION, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET

Airwaves putting a smile on the dial, says ARN chief

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Original article by Michael Bodey
The Australian – Page: 28 : 30-May-16

Pollinate has produced research on behalf of Australian Radio Network which examines how consumers engage with various media formats. The research found that radio is one of five media channels that are particularly effective in lifting the mood of audiences. ARN CEO Tony Kendall says the research shows that consumers are no longer engaged with radio in the late evening prior to going to bed, when they tend to use mobile phones and tablet devices rather than listening to radio or watching TV.

CORPORATES
AUSTRALIAN RADIO NETWORK PTY LTD, POLLINATE, FACEBOOK INCORPORATED, SPOTIFY LIMITED, PANDORA MEDIA INCORPORATED, KIIS FM, GOLD FM

Guardian and Mail Online show digital free-for-all risks

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Original article by Darren Davidson
The Australian – Page: 28 : 30-May-16

New data from Nielsen shows that "The Australian" boasted 13.3 per cent growth in its unique digital audience in April 2016, while unique visitors to the website of "The ­Australian Financial Review" rose by 19.1 per cent. The premium online content of both newspapers is subject to a paywall. In contrast, the non-paywalled Guardian Australia website recorded audience growth of just 4.2 per cent, while there was a 4.5 per cent decline in unique visitors to the Daily Mail Australia site.

CORPORATES
THE NIELSEN COMPANY (AUSTRALIA) PTY LTD, NEWS CORP AUSTRALIA PTY LTD, NEWS CORPORATION – ASX NWS, FAIRFAX MEDIA LIMITED – ASX FXJ, GUARDIAN AUSTRALIA, DAILY MAIL AUSTRALIA, NINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NEC, LONDON STOCK EXCHANGE, BUZZFEED PTY LTD, VICE MEDIA INCORPORATED, MASHABLE INCORPORATED